IFGL set to buy 2 units of Moncon Holdings

IFGL Refractories is all set to buy two units of Britain-based Moncon Holdings. The Indian refractories maker will acquire Monocon International Refractories and Monocon Overseas. The financial details of the deal were not disclosed.

IFGL said the proposed acquisition is subject to confirmatory financial and legal due diligence which started today.

The acquisition also includes subsidiaries of the Moncon group namely Mono Ceramics Inc, US, Monocon Taiwan Ltd, Taiwan, Tianjin Meinuo Minerals Company Ltd, China, and Monocon Refractarios Limitada, Brazil.

Further, the company has sent a notice to the Bombay Stock Exchange that an extraordinary general meeting would be held on September 5 to pass the resolutions including the latest development.

The deal is in line with the company's foreign expansion plans. On July 28, the company, in its board meeting, had examined opportunities for an overseas acquisition.

It had authorised the managing director, director and chief executive to take necessary steps, including borrowing of funds required for the purpose.

IFGL Refractories is a merged entity of Indo-Flogates and IFGL Refractories and is a part of the S K Bajoria group of companies. Indo-Flogates was a joint venture between the UK-based Flogates and the S K Bajoria group.

Post the acquisition of Flogates UK by the Vesuvius group, the Bajorias ended their relationship with the foreign partner.

In January 2000, the Bajorias announced the merger of Indo-Flogates with IFGL Refractories. Post the merger, they held 54 per cent of the equity in the merged entity.

The group has also entered into a strategic alliance with an Austrian firm, Vetisch-Radex-Didier, a world leader in refractories, for marketing its products in India.

IFGL shares closed at 3.1 per cent higher at 57.70 rupees in the Bombay stock market at the close of the day.